PF vs EPS: Understanding Your Retirement Pension Calculation

• EPFO deductions split into EPF (lump sum) and EPS (monthly pension) components.
• EPF builds a corpus for retirement, while EPS provides a fixed monthly pension after age 58.
• Pension calculation depends on years of service and a fixed salary ceiling, not the total PF balance.
• Employer's 12% contribution is split: 8.33% to EPS (max Rs 15,000 salary cap), 3.67% to EPF.
• EPS offers family security: spouse gets 50% pension, children 25% each until 25, orphans 75%.

Why It Matters: EPF provides a retirement lump sum, while EPS ensures a lifelong monthly pension based on service and salary.